Montgomery is most well known as the capital of Alabama and the epicenter of the Civil Rights Movement in the 1960s. In particular, the city was the home of the Rosa Parks-inspired Montgomery Bus Boycotts.
It is located in south-central Alabama and is a stable real estate market between its job market and stable population. It has a variety of civic organizations and nonprofits. Montgomery is also the third most populous city in the state, behind Huntsville and Birmingham.
As a real estate market, like Huntsville, there is more demand for homes and long-term rentals than there is supply. It is a very attractive renters’ market, and the city is often thought of as a very good city for renters with a high rent-to-income ratio. According to Zumper, a one bedroom apartment has a median rent of $710 as of December 2021, while a two bedroom apartment has a median rent of $820.
Coupled with a low cost of living, high quality of life, and overall affordability, Montgomery is a superb place to be a real estate investor. To invest in real estate in Alabama, you might benefit from hard money loans, which gives you cash approved within a couple of days in a city where demand for property is outpacing supply.
Hard money loans are flexible, fast, and dependable. They are mostly used for long-term rentals, construction projects, fix and flips, as well as repairs on distressed properties. Foreign nationals who are encountering barriers investing in U.S. real estate may also encounter significant barriers outside of hard money lending.
They are not contingent on the borrowing history of the buyer and the credit score of the borrower. Although most hard money lenders have a minimum credit score requirement of 600 to 620, hard money loans are contingent on the value of the property (after repairs). If a borrower defaults on a hard money loan, the hard money lender confiscates the property without the hassle of expensive and time-consuming foreclosure proceedings.
Since hard money loans are contingent on the property over borrowing history, investing using hard money loans is known as asset-based investing. But hard money loans come with disadvantages too, including short repayment periods, high interest rates, and low LTV ratios.
In Montgomery, getting approved for a hard money loan can be done depending on the property. But it’s important to not just trust any hard money lender since many are untrustworthy and can take advantage of new investors. Instead, it’s important to only trust hard money lenders who have experience working with real estate investors and who provide the best rates possible.
Our private lenders’ directory has attached a list of these reputable hard money lenders to secure your optimal property in Montgomery.